Question

Asheville Office Equipment, Inc. manufactures custom filing cabinets. Alma Ortiz, president of Asheville Office Equipment, Inc., has gathered the following cost information from the company's accounting records for the latest month of operations. Advertising Fire insurance premium for the factory equipment Sales office depreciation Oil for the machines used to produce the cabinets Wood used to produce the cabinets Property taxes on the factory building Freight to ship the cabinets to customers Sales department salaries Production supervisors' salaries Assembly line workers' wages $15,000 5,000 2,000 1,500 30,000 8,000 2,500 34,000 18.000 45,000 (a) Calculate the total period costs for the month. Total period costs $ 56500 (b) Calculate the total product costs for the month. $ Total product costs O earch Et

Answer 1

	Total period costs
	Advertising					15,000
	Sales office depreciation					2,000
	freight to ship the cabinets to customers					2,500
	Sales department salaries					34,000
	Total period costs					53,500	answer
	total product cost
	Fire premium insurance for the factory equipment					5,000
	oil for the machines used to produce the cabinets					1,500
	Wood used to produce the cabinets					30,000
	propety taxes on the factory building					8,000
	production supervisor salaries					18,000
	Assembly line worker's wages					45,000
	total product cost					107,500	answer
	Manufacturing overhead incurred
	Fire premium insurance for the factory equipment					5,000
	oil for the machines used to produce the cabinets					1,500
	propety taxes on the factory building					8,000
	production supervisor salaries					18,000
	Manufacturing overhead incurred					32,500	answer